Deal: King & Wood Mallesons (KWM) has advised the National Australia Bank on its recent $4.25 billion capital raising.

Value: The raising comprises a $3 billion fully underwritten institutional placement, and $1.25 billion share purchase plan.

Area: Capital raising, banking & finance.

Key players: The KWM team advised NAB on all aspects of the transaction, and was led by partner Diana Nicholson and senior associate Jack Hill.

Deal significance: NAB had launched its capital raising as earnings were hit by the coronavirus.

NAB, which has a large exposure to small and medium-sized business, revealed first-half profits were down 51 per cent.

CEO Ross McEwan said NAB had entered the downturn in “a robust position” but had decided to raise capital to deal with the impact of impaired loans and a requirement to mark-to-market its loan portfolio.

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“Together with our recently completed institutional placement, the capital raised through the offer will assist us to manage through a range of possible scenarios related to the COVID-19 pandemic, including a prolonged and severe economic downturn,” Mr McEwan said.

Commenting on the transaction, Ms Nicholson said that it drew on the considerable experience and expertise of the firm’s equity and capital markets team during an extremely challenging period.

“This kind of large-scale raising, during a time of high market volatility, and frequent regulatory change requires a skilled and dedicated team,” she said.

“It is a privilege to deliver an exceptional result for a highly valued client.”